Public-private partnership may be developed
December 26, 2004
By JOHN R. PULLIAM of The Register-Mail
GALESBURG, IL - Knox County officials are in the information-gathering phase as they attempt to decide whether to build and operate a biodiesel plant.
Knox County Landfill Administrator Larry Larson raised the issue in early December.
Gerald Link, R-District 5, told Knox County Board members Wednesday that Larson has "done a lot of research and is doing a lot of research. He is enthusiastic about it. The question is, should the county be involved in something like this?"
Link said Larson will report to the board in the next month or two.
On Monday, Larson said there are a number of economic development benefits. Biodiesel is an alternative fuel produced from domestic renewable resources, such as soybeans, a crop local farmers grow. The fuel can be mixed at any level with petroleum diesel to create a biodiesel blend that can be used in diesel engines with little to no modification.
"It could really help the county because of so many jobs being lost," Larson said.
How much of an impact such a plant might have is difficult to determine at this time because more information is needed. Knox County Administrator Alan Hallberg said he does not envision a "huge" plant.
"We don't want that, I don't think," he said.
The job potential is there, according to the National Biodiesel Board. A tax incentive for the production of biodiesel is expected to increase demand and create up to 50,000 jobs in the United States over the next 10 years, the board reports.
No studies are needed to show jobs are needed in Knox County. Maytag closed its Galesburg refrigerator plant earlier this year, moving 1,600 jobs, while BlueScope Butler is slated to close in 2005 and move 270 jobs.
As of October, more than 20 companies - a relatively small number - have invested millions of dollars in developing manufacturing plants to proproduce biodiesel and to market the fuel. About 20 other new firms are reporting plans to construct biodiesel plants in the near future.
Larson said rail access and interstate access, both readily available in the Galesburg-Knoxville area, are needed. One question would be whether the county would go it alone or look for investors.
Hallberg cited one reason why having private investors could be important.
"I imagine there's an element of the population that would be totally against it (the plant)," Hallberg said. "That's just judging from comments about the nursing home."
The Knox County Nursing Home is the one business the county owns that competes with privately-owned businesses.
Dale Parsons, D-District 3, is the board's representative to Western Illinois University's Rural Conservation Development Board. He said he has talked with that group about the county and the possibility of a biodiesel plant here.
"The interest is there," Parsons said. "They think it should be a combination of private (investors) and government together."
Knox County Board Chairman Jan Occhi, D-District 3, said board members have been encouraged to think outside of the box.
"I thought it was a good idea to look at it," she said. "Let's explore all options."
Link said he thinks other investors are needed if the plant is to become a reality.
Contact John R. Pulliam at 343-7181, Ext. 215, or jpulliam@register-mail.com.
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